Predatory lending costs U.S. consumers nearly $9 billion per year in excess interest and fees. So-called predatory lending practices rig consumer loans in ways that virtually guarantee default and foreclosure. The loan's terms can cost the poor and the elderly everything, leaving behind a trail of abandoned homes and neighborhoods. To help prevent this problem, Indiana Legal Services, Inc. (ILS)has joined forces with other community advocates, including Martindale Brightwood Community Development Corporation and the Wisconsin Credit Union League, to deter abusive mortgage lending methods. Under a new program called, "the Saving Homes in Center Township Legal Project," legal aid attorneys and paralegals assigned to a "victim rescue" team will review loans to look for evidence of fraud. Homeowners can gain access to ILS's services through referrals from programs like the Volunteer Income tax assistance program (VITAP). VITAP works to educate low-income tax filers about predatory lending while also providing free tax preparation. When instances of suspected fraud are identified, Saving Homes staff members may provide direct legal representation or refer the issue to either the Indiana Attorney General's office or The Association for Community Reform Now (ACORN). Currently, one lender, AmeriDebt, has settled two lawsuits where the company charged low income customers exorbitant fees. When the settlement is approved by a judge, up to $35 million will be deposited into a fund to pay back 300,000 former AmeriDebt customers. Also as a remedy in cases like these, courts will urge the lender to sometimes renegotiate fairer terms with homebuyers.
Contact Information:
Stephen Byers Indiana Legal Services 151 N. Delaware St. Suite 1800 Indianapolis, IN 46204-2523 Phone: (317) 631-9410 Fax: (317) 631-9773 Stephen.Byers@ilsi.net
LSC:
America's Partner for Equal Justice 